California-based Andreessen Horowitz, also known as a16z, has announced that it is starting the a16z Crypto Fund which will invest USD 300 million into cryptocurrency-based companies and platforms. The fund will be managed by a team of crypto specialists led by Chris Dixon, including former Assistant US Attorney General Kathryn Haun.
The a16z Crypto Fund is designed for long-term investment. Andreessen Horowitz has been investing in crypto-based ventures for over five years already and has sold none of their investments. One of its most notable crypto investments is Coinbase, which has become a top cryptocurrency exchange in the United States.
Chris Dixon says the a16z Crypto Fund will continue to invest in cryptocurrency even in harsh times, like the current bear market which has seen Bitcoin’s price decline from USD 20,000 to USD 6,000. This could end up being a good strategy, since down times are perhaps the best times to invest since assets are cheaper than they should be. Also, a16z will invest across a full spectrum of crypto-based assets, all the way from startups to mature assets like Bitcoin and Ethereum.
The fund will be aimed at platforms and companies that provide services which could end up being used by hundreds of millions of people, and will avoid companies that are speculative and haven’t shown any results. It will provide operational support to the companies and platforms they invest in, including marketing, communications, legal, management, and employee recruiting support.
Andreessen Horowitz manages billions of dollars in investment assets. The a16z Crypto Fund represents one of the first serious institutional investments into cryptocurrency and blockchain technology, and comes around the same time that Galaxy Digital has announced that it will also be investing USD hundreds of millions into crypto-based ventures and platforms. This could be the beginning of a larger scale trend of institutional investment into cryptocurrency, which could lead to tremendous amounts of money flowing into the cryptocurrency markets.
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